Morning Highlights


Highlights

  • CME to increase daily price limits on April 30th for beans, meal and wheat; Soybeans up 10 cents to 75 cents, meal up 5 bucks to $25,  wheat and HRW up 5 cents to 35 cents. Corn is unchanged at 25 cents and Mpls is unchanged at 60 cents.
  • Weekly crop progress and conditions report out today at 3PM CDT.
  • Expectations are that a re-write of NAFTA could come over the next several weeks.
  • Energy markets are mostly lower.
  • The US$ is weaker, the CD$ is stronger and gold is $1-$2 lower.
  • The Dow, S&P, NASDAQ and Nikkei are trading higher.
  • The cattle market is expected to open higher on higher prices paid last week in the cash market. The hog market is expected to open higher on last week’s strength in wholesale pork prices.

Corn

  • The corn market traded lower in sympathy with the wheat market.
  • The next 10 days are expected to be more favorable (than the last 10 days) for spring field work.
  • Spreads; K/N 8 ½ carry, N/U 7 carry, U/Z 9 ¼ carry, Z/H 7 ¾ carry.

Outlook:  lower trade on spillover weakness in the wheat market

Soybeans

  • The soybean market traded slightly higher on demand for beans and meal, shortfall in Argentina’s bean crop.
  • July palm oil closed at 2,369, down 32 ringgits, on expectations for slowing demand and weakness on other vegetable oils.
  • China’s bean market was down 23 ¼ cents overnight.
  • NOPA crush report for March is scheduled for today around 11 AM CDT.  Average crush estimated at 168.247 million bushels. Soyoil stocks are estimated at 1.962 billion pounds.
  • Spreads; K/N 10 ¾ carry, N/Q ¾ inverse, N/X 17 inverse, X/F 3 carry.

Outlook:  higher trade on poor Argentina soybean crop and decent demand

Wheat

  • The wheat market traded lower on ideas that the winter wheat crop can be saved by the widespread rains that are expected to come late this week and into the weekend.
  • This weekend’s freezing temperatures are not expected to cause much damage to the winter wheat crop.
  • Spring wheat seedings were rated 2% complete through Sunday, April 9th, and ideas are that another 2% got planted last week.
  • The winter wheat crop was rated 30% G/E last week.
  • Tunisia looks to purchase 125,000 tonnes of soft wheat.
  • Spreads; Mpls K/N 9 ¾ carry, Kansas City K/N 19 ¼ carry and Chicago K/N 16 ¾ carry.

Outlook:  lower on improving chances for beneficial moisture in HRW country